How does job-related diversity affect boards' strategic participation? An information-processing approach

More than ever, corporate leaders consider the presence of different skills, knowledge, and experience in their boardrooms being important for boards' involvement throughout the whole strategy process. However, even though of great practical relevance, we have limited knowledge about how such d...

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Bibliographic Details
Published inLong range planning Vol. 51; no. 6; pp. 937 - 952
Main Authors Gabaldon, Patricia, Kanadlı, Sadi Boĝaç, Bankewitz, Max
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.12.2018
Subjects
Board processes
Board strategic participation
Information-processing theory
Job-related diversity
Information-processing theory
Board strategic participation
Board processes
Job-related diversity
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Summary:More than ever, corporate leaders consider the presence of different skills, knowledge, and experience in their boardrooms being important for boards' involvement throughout the whole strategy process. However, even though of great practical relevance, we have limited knowledge about how such diversity affects boards' active contribution to corporate strategy. Applying information-processing theory, we explore how job-related diversity may be an important determinant for boards' strategic participation. Using a survey database collected in Norway, we find that job-related diversity contributes to boards' strategic participation through directors' use of knowledge and skills.
ISSN:0024-6301
1873-1872
DOI:10.1016/j.lrp.2018.02.005